AssetsCashAccounts receivableInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableLong-term notes payableTotal liabilitiesEquityCommon stock, $5 par valuePaid-in capital in excess of par, common stockRetained earningsTotal liabilities and equityFORTEN COMPANYComparative Balance SheetsDecember 31Cash flows from operating activitiesd. Pald $46,525 cash to reduce the long-term notes payable.e. Issued 2,600 shares of common stock for $20 cash per share.f. Declared and paid cash dividends of $50.300.Adjustments to reconcile net income to net cash provided by operations:Income statement items not affecting cashCash flows from investing activitiesCurrent Year$ 51,40067,310277,1561,300Changes in current assets and current liabilitiesCash flows from financing activities:397,166156,500(37,125)$ 516,541Additional Information on Current Year Transactionsa. The loss on the cash sale of equipment was $6.125 (details in b).b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash.c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for thebalance.$ 54,14174,800128,941164,25039,000184,350$ 516,541FORTEN COMPANYStatement of Cash FlowsFor Current Year Ended December 31Net increase (decrease) in cashCash balance at December 31, prior yearCash balance at December 31, current yearRequired:1. Prepare a complete statement of cash flows using the Indirect method for the current year.Note: Amounts to be deducted should be indicated with a minus sign.Prior Year$ 74,50051,625252,8002,025380,950109,000(46,500)$ 443,450$ 116,17555,950172,125151,2500120,075$ 443,450

The cash flow statement is prepared at the end of the period to know the cash position. It reflects…

Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Pald $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50.300. Required: 1. Prepare a complete statement of cash flows using the Indirect method for the current year.

Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Pald $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50.300. Required: 1. Prepare a complete statement of cash flows using the Indirect method for the current year.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Annual report; balance sheet; income statement Common...

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